Your Merchant Guru

An Enlightened Approach to Credit Card Processing

  • Email
  • Facebook
  • LinkedIn
  • Home
  • About Us
  • Testimonials
  • Referral Program
  • All About EMV
  • FAQ
  • Contact – Free Enlightenment Session

Ask the Merchant Guru: Why Are One Processor’s Rates Way Lower?

Q) One credit card processor is offering me rates WAY lower than everyone else? Is he trying to rip me off, or is everyone else?

A) Don’t let anyone — a bank or a credit card processing vendor — tease you with rates that are too good to be true.

There’s a reason you ignore those “low introductory rate” consumer credit card offers that come in the mail — you know they will eventually skyrocket. While an introductory consumer credit card rate usually lasts for a limited time, the variables for credit card processing are almost too numerous to count. When offered any rate, be sure to ask your processor:

  1. What type of credit and debit cards does the offered rate apply to?
  2. How long will this rate last?

Credit and Debit card accounts are attached to a multiple of incentive and reward programs designed to encourage consumers to keep spending on goods and services like yours.

Fulfilling those rewards – from “cash back” to “airline miles” costs money, so the credit card companies pass along most, if not all, of that cost to the merchants. Just because a store sells someone a loaf of bread for $1.00; the percentage of that dollar they pocket will vary based upon how the consumer pays. While “cash” is king, allowing the merchant to keep 100% of the sale, debit cards untied to a reward program come in a close second. These cards are usually the ones attached to the low rates dangled before your eyes. On the other end of the spectrum, credit cards tied to pricey rewards programs offer the highest rates, resulting in less money to line your pocket.

Bottom line, if you’re shopping for credit based upon the lowest rate, you’re playing a game you’re bound to lose.

(206) 852-1297

Ask the Merchant Guru

  • Ask the Merchant Guru: Are Minimum Purchase Amounts for Credit Cards Legal?
  • Ask the Merchant Guru: Do You Think It’s Possible For A New Credit Card Brand to Enter the Market?
  • Ask the Merchant Guru: Do Businesses Just Self-Report Their Line of Business to Credit Card Companies?
  • Ask the Merchant Guru: What Are The Worst False Promises You’ve Seen From Credit Card Processors?
  • Ask the Merchant Guru: How Much Do Vendors Pay to Credit Card Companies Per Transaction?
  • Ask the Merchant Guru: What is Interchange? Are All Interchanges Created Equal?
  • Ask the Merchant Guru: Why Are There So Many Hidden Fees in Credit Card Processing Contracts?
  • Ask the Merchant Guru: Should I Break My Current Credit Card Processing Contract?
  • Ask the Merchant Guru: Should I Lease My Credit Card Machine?
  • Ask the Merchant Guru: Why Are One Processor’s Rates Way Lower?
  • Ask the Merchant Guru: Why Should I Pay for Credit Card Processing?

Credit Card Processing Services

Credit Card Processing

Your Merchant Guru is continually "cracking the code" of the rapidly evolving credit card processing industry so you don't have to.

By enlightening you about the latest technological solutions and finding the right fit for you, we can help you get paid faster and more easily while saving money.

Enlighten Me

Bookkeeping Services

Bookkeeping Services

If your head is constantly buried in your company’s books, then your attention isn't where you want it to be — focused on growing your business.

Your Merchant Guru offers complete bookkeeping services for small and medium-sized businesses. We help you cover every base, make every payment and hit every deadline.

Enlighten Me

Coaching Services

Business Financial Planning

You’re making sales, but are you making money? When is the right time to invest in new equipment or personnel? Before you’re big enough to hire a CFO, call Your Merchant Guru.

Our expert business planner can analyze where you are now and create a custom plan to help guide you to where you need to be.

Enlighten Me

Copyright © 2021 · Your Merchant Guru · 2600 SW Barton St., Suite A24, Seattle, WA 98126 · Phone: (206) 852-1297 · Log in